2011-08-15T10:14:40-04:00 2010-09-30 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE SUITE 2600 INDIANAPOLIS IN 46204 990 2009-10-01 060646597 Danbury Hospital DANB 2037398110 24 Hospital Avenue Danbury CT 06810 STEVEN ROSENBERG 2011-07-26 3176817000 2009 2016-02-24 21:20:13Z john m murphy md eff 71 24 hospital avenue danbury CT 06810 520469134 false X www.danburyhospital.org X 1885 CT To enhance through medical care, education and research the health and well being of individuals in Danbury,Connecticut and surrounding communities in partnership with those we serve. 11 8 3330 409 3645283 -4274483 7965762 9050280 462043181 475132255 7063035 3955300 1392951 3018711 478464929 491156546 0 0 0 0 234082048 249811299 0 0 0 208724558 210669186 442806606 460480485 35658323 30676061 559454847 603421824 178787859 179416697 380666988 424005127 To enhance through medical care, education and research the health and well being of individuals in Danbury,Connecticut and surrounding communities in partnership with those we serve. false false 368028973 442052484 Clinical During fiscal year 2010, Danbury Hospital served 20,712 inpatients and cared for 157,022 oupatients. In addition, 70,260 patients came through our Emergency Department and 7,615 one-day surgery procedures were performed. Led by a team of skilled and dedicated healthcare professionals, Danbury Hospital's commitment to clinical excellence and patient satisfaction was recognized by numerous prestigious organizations in 2010. Awards and Achievements: -Danbury Hospital achieves HealthGrades 2010/2011 Outstanding Patient Experience Award. -The Praxair Cancer Center received the Outstanding Achievement Award for maintaining the highest standards of care. -Danbury Hospital was among 25 hospitals nationwide to be recognized for achieving exemplary surgical care outcomes. -Danbury Hospital received the Women's Health Excellence Award. -The Center for Advanced Orthopedic and Spine Care at Danbury Hospital is one of only five in the state to hold Blue Care designation in both programs (total joint and spine). Accreditations: -As a regional resource, Danbury Hospital continued to receive national recognition for its commitment to excellence by providing an advanced level of care as a nationally accredited Primary Stroke Center, Trauma Center and Chest Pain Center. -The Center for Weight Loss Surgery was reaccredited with the highest "1A" ranking. -The Southbury Sleep Disorder Center received accreditation with the highest possible recommendation. The creation of Western Connecticut Healthcare-a healthcare delivery system that combines the resources and expertise of Danbury Hospital, New Milford Hospital and their affiliates-represents a historic achievement. This affiliation gives us an opportunity to provide a higher level of care throughout the region in the most cost-effective manner while meeting the challenges posed by healthcare reform head-on. With state approval, Danbury Hospital is moving forward with the construction of a new $150 million tower project-the largest expansion in the organization's history. The new tower will double the size of our current Emergency Department and critical care unit to meet the region's growing demand for care. Work on the new tower will begin this spring, just as Danbury Hospital opens a new $8 million Level IIIB neonatal intensive care unit. The opening of the Danbury Hospital Research Institute heralds a new era of personalized medicine that holds great promise for the development of targeted therapies as we gain a deeper understanding of the genetic basis of disease. As a leading university teaching institution, Danbury Hospital established a new surgical residency program-the state's first nationally accredited program in decades. Providing our physicians and medical team with the technological advances they need to succeed remained a priority. The da Vinci robotic surgical system and the new Zeego imaging system, for example, offer patients a sophisticated level of care rarely available in a community hospital. Our HealthLink computerized health information exchange provides the electronic infrastructure for clinicians to readily access critical data. Ever mindful of improving the patient experience, Danbury Hospital built upon its established high levels of patient satisfaction and service excellence through its affiliation with Planetree, a recognized philosophy in patient-centered care. The partnership focuses on implementing innovative models of care that nurture the mind, body and spirit by supporting patients, family members and staff alike. Knowledge is power when it comes to improving the health and wellness of people of all ages in Connecticut and New York. That's the message behind a number of Danbury Hospital initiatives designed to build healthy communities. Danbury Hospital intensified its commitment to the well-being of area residents by investing more than $60 million in health resources throughout the region. 945730 590423 Research The Danbury Hospital Research Institute heralds a new era of personalized medicine that holds great promise for the development of targeted therapies as we gain a deeper understanding of the genetic basis of disease. The Institute will enable us to stay on the forefront of the evolving world of molecular medicine and to deliver the benefits of this work to patients at the bedside. 20151484 3831639 Teaching Danbury Hospital provides a dynamic environment for teaching and research for our graduate medical education programs. The hospital received Accreditation with Commendation from the Joint Commission on Accreditation of Healthcare Organizations, and is approved to sponsor residency programs by the Accreditation Council for Graduate Medical Education of the American Medical Association. As a leading university teaching institution, Danbury Hospital established a new surgical residency program- the state's first nationally accredited program in decades. During the year 4,278 persons participated. 389126187 true true false true false false false false true true false true false true true false false false false false true false false true true false true false true false false false false false true false false false false false true true false false true 568 0 true 3330 true true true true CJ false false false false false false false 11 8 true false false false true true true true true false false true true true true true true true true false X X MARY JO PAWLAK 2037398110 24 HOSPITAL AVENUE Danbury CT 06810 JOHN M MURPHY MD 40.0 X X 694153 0 38467 FRANK J KELLY 40.0 X X 1515549 0 44234 Neil Culligan MD 1.0 X 0 0 0 DAVID KRAMER MD 1.0 X 0 0 0 David Cyganowski 1.0 X 0 0 0 KARL H EPPLE 1.0 X 0 0 0 Richard G Jabara 1.0 X 0 0 0 MICHAEL HAMMOND 1.0 X 0 0 0 Joseph D Skrzypczak 1.0 X 0 0 0 NEIL R MARCUS ESQ 1.0 X 0 0 0 JOHN J MARTOCCI 3.0 X 0 0 0 JOHN R PATRICK 1.0 X 0 0 0 Brian C White 1.0 X 0 0 0 DAVID N VERNER 1.0 X 0 0 0 ROBERT WENICK MD 1.0 X 0 0 0 JAMES KENNEDY 1.0 X 0 0 0 JOHN C KLINE 3.0 X 0 0 0 JUDITH WARD 40.0 X 256245 0 39449 Michael Daglio 40.0 X 289864 0 38797 MATTHEW A MILLER MD 40.0 X 0 572408 31752 PHYLLIS F ZAPPALA 40.0 X 586359 0 28415 Lisa Messina 40.0 X 247378 0 15564 DONNA KAPLANIS 40.0 X 242347 0 44100 MOREEN O DONAHUE 40.0 X 367840 0 45370 MORRIS GROSS 40.0 X 279144 0 41937 William Roe 40.0 X 506785 0 37986 Peter Courtway 40.0 X 310297 0 23296 Joseph A Campbell 40.0 X 231084 0 44924 William Maldarelli 40.0 X 244324 0 30914 William Delaney MD 40.0 X 258522 0 38873 David S Wishko 40.0 X 127633 0 23988 Dawn Myles 40.0 X 220398 0 17906 Ramin Ahmadi 40.0 X 251979 0 38579 6629901 572408 624551 372 false true false Danbury Radiological Associates PO Box 10068 LANCASTER PA 17605 Radiology Services 1186205 Vitalize Consulting Solutions 110 East State St KENNETT SQ PA 19348 Consulting 994940 SPM Marketing and Comm 15 West HarrisSuite 300 LAGRANGE IL 60525 Marketing Consul. 836769 The Advisory Board PO Box 79461 BALTIMORE MD 212790461 Credential Services 814699 Perkins Eastman Architects PC 115 Fifth Avenue NEW YORK NY 10003 Architects 746853 41 6994498 1843097 212685 9050280 ANCILLARY SERVICE 621400 253624421 253624421 MEDICARE/MEDICAID PAY'TS 621990 179663593 179663593 ROUTINE PATIENT 621990 33179047 33179047 CONTRACT LAB 621500 6831321 6831321 RENTAL INC.-AFFL. EXEMPT 532000 1833873 1637880 195993 475132255 4133409 4133409 0 0 826123 52793 773330 773330 176948 563099 33283 27081798 11600 27271507 0 -189709 11600 -178109 -178109 0 0 1495093 1988288 -493195 -493195 INTEREST IN DEVELOP. FUND 900099 3239430 3239430 CAFETERIA INCOME 561000 855892 855892 CHANGE IN INVEST IN DHSIC 900099 723711 723711 -2080457 157827 -3749137 1510853 2738576 491156546 472402857 3645283 6058126 0 0 0 0 5721956 1990611 3731345 601451 601451 180373023 153822114 26550909 20317263 17326562 2990701 29274811 24965559 4309252 13522795 11532240 1990555 0 1355923 1355923 656505 656505 50567 43124 7443 0 531329 531329 55239379 47108142 8131237 2181707 1860560 321147 75733876 64585849 11148027 9450486 8059374 1391112 0 9172314 7822149 1350165 277144 236348 40796 0 188330 160608 27722 4561392 3889955 671437 0 25703935 21920316 3783619 654929 654929 BAD DEBT 10687109 10687109 MALPRACTICE 6692376 6692376 EQUIPMENT RENT AND MAINT. 6447486 5498416 949070 PROFESSIONAL MEMBERSHIP 1084399 924775 159624 460480485 389126187 71354298 0 0 7218 38767807 26452669 41637724 51429630 3599661 2254804 7249038 7538558 34879093 33776862 457882261 274705978 170891892 183176283 144833506 173061358 117596126 125724442 559454847 603421824 37381134 38415871 79030 1760657 117135000 114675000 24192695 24565169 178787859 179416697 X 325008268 368034236 28552625 28224280 27106095 27746611 380666988 424005127 559454847 603421824 X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false true 10 false false true 91492 false true 202 91704 false Other Activities Description Part II-B, Line 1i Only state and local officials were lobbied during 2010. As part of this miscellaneous office expense such as postage, etc. were incurred and were reflected on line #1i accordingly. true true 3590056 3590056 234698004 133813169 100884835 3061054 1912883 1148171 196721203 138979926 57741277 19811944 0 19811944 183176283 BOND ISSUANCE COST 3117386 BULK ACCOUNTS NET OF RESERVE 98582 CASH VALUE LIFE INSURANCE 634431 DUE FROM RELATED PARTIES 19100300 OTHER RECEIVABLES 361792 BOND ESCROW FUND 1679707 INTEREST IN DEVELOPMENT FUND 77105507 INVESTMENT IN DHSIC 23626737 125724442 0 ASSET RETIREMENT OBLIGATION 469148 DUE TO 3RD PARTIES 11079973 MALPRACTICE TRUST FUND RESERVE 8500000 RESERVE FOR WORKERS COMPENSATION 4516048 24565169 Intended use of endowment fund Part V, Line 4 The intended use of the endowment funds are to provide supplemental/ sole financial support for a variety of Danbury Hospital programs and services. FIN 48 Footnote Part X There is no FIN 48 footnote in the audited financial statements. Central America and the Caribbean 1 1 Program Services Malpractice insurance 8240099 1 1 8240099 true true true X 400. true X 600. true true false true true 5165178 759250 4405928 0.00980 48741279 30197806 18543473 0.04120 53906457 30957056 22949401 0.05100 751253 26066 725187 0.00160 20151484 3831639 16319845 0.03630 2962595 1776520 1186075 0.00260 945730 590413 355317 0.00080 24811062 6224638 18586424 0.04130 78717519 37181694 41535825 0.09230 true 4323429 0 153517775 185398811 -31881036 X true true Danbury Hospital

24 Hospital Avenue Danbury CT 06810

X X X X diagnostic/dialysis Center for Child & Adol Treatment

152 West STreet Danbury CT 06810

X Comm Ctr for Behavior Health

152 West Street Danbury CT 06810

psychiatric The Pediatric Health Center

70 Main Street Danbury CT 06810

X Southbury Geriatric Center

22 Old Waterbury Road Southbury CT 06488

X Seifert & Ford Comm Health Ctr

70 Main Street Danbury CT 06810

X Costing Methodology Used To Calculate The Amounts Reported In The Table: Charity Care At Cost Percentage Total Gross Patient charges written off to charity (Income Statement) * Patient Cost to Charge % (see below) = Total Community Benefit Expense Total Community Benefit Expenses - Revenue from Uncompensated Care Pools and programs (DHS * % of cost of uncompensated care shown on the OCHA Schedule 500) = Net community benefits expenses Net community benefits expenses * total expenses = % of total expenses Ratio Cost To Charge Calculation Total Operating Expenses divided by Adjusted Patient Care Cost (Bad Debt, Other Operating Income and Intercompany Income are removed from the total operating expenses) Adjusted Patient Care Cost divided by Gross Patient Charges There are no physician clinics included in this amount. Bad debt expense of $10,687,109 was excluded from total functional expenses in determining the percentages presented in Part I, line #7, column f. It is the policy of the Hospital to provide necessary care to all persons seeking treatment without discrimination on the grounds of age, race, creed, national origin or any other grounds unrelated to an individual's need for the service or the availability of the needed service at the Hospital. A patient is classified as a charity care patient by reference to established policies of the Hospital. Essentially, these policies define charity services as those services for which no payment is anticipated. In assessing a patient's inability to pay, the Hospital utilizes the generally recognized federal poverty income guidelines, but also includes certain cases where incurred charges are significant when compared to a responsible party's income and their countable assets. Those charges are not included in net patient service. No amount was shown for Part III, Line #3, since the amount cannot be quantified with enough certainty. Danbury Hospital assigns specific transaction codes to discounts and payments and they are posted directly to the patient accounts. Therefore bad debt transfer amounts are based singularly on patient liabilities. Bad Debt Expense at cost is calculated by multiplying bad debt expense as shown in the functional expenses by the ratio of adjusted patient care costs to patient charges. Danbury Hospital's Medicare shortfall should be treated as a community benefit as the organization strives to provide 24/7 coverage, improved patient access, highest clinical quality as well as addressing the needs of the community by offering critical services to our geographic area. As a result, the organization must balance the cost of these programs against the continued decreasing government reimbursement levels, uninsured population and community needs. Costing method used is based on TSI Source System Medicare Patient Net Revenue Less Cost. It is the policy of Danbury Hospital to provide "Financial Assistance" (either free care or reduced patient obligations) to persons or families where: (i) there is limited or no health insurance available; (ii) the patient fails to qualify for governmental assistance (for example Medicare or Medicaid); (iii) the patient cooperates with the Hospital in providing the requested information; (iv) the patient demonstrates financial need; and (v) Danbury Hospital makes an administrative determination that Financial Assistance is appropriate. After the Hospital determines that a patient is eligible for Financial Assistance, the Hospital will determine the amount of Financial Assistance available to the patient by utilizing the Charitable Assistance Guidelines, which are based upon the most recent federal poverty guidelines. Danbury Hospital shall regularly review this Financial Assistance Policy to ensure that at all times it: (i) reflects the philosophy and mission of the Hospital; (ii) explains the decision processes of who may be eligible for Financial Assistance and in what amounts; and (iii) complies with all applicable state and federal laws, rules, and regulations concerning the provision of financial assistance to indigent patients. Consistent with this mission, Danbury Hospital recognizes its obligation to the community it serves to provide financial assistance to indigent persons within the community. In furtherance of its charitable mission, Danbury Hospital will provide both (i) emergency treatment to any person requiring such care; and (ii) essential, non-emergent care to patients who are permanent residents of its primary service area who meet the conditions and criteria set forth in this Policy, without regard to the patients' ability to pay for such care. Elective procedures generally will not be considered essential, non-emergent care and usually will not be eligible for Financial Assistance. Danbury Hospital will collect from individuals on financial assistance if they received a partial charitable discount. All patients can apply for charitable care on balances they feel that they cannot afford. Explanation of Number of Facility Type 9 Diagnostic Centers 5 Outpatient Physician Offices 1 Rehabilitation Center The organization leads a collaborative effort to monitor and report health and human services data sets for our region. We work in partnership with the local University, United Way and various community organizations and agencies to produce a community health report card. Data sets included basic demographics, along with health issue-specific information. Additionally, we survey our consumers on a regular and ongoing basis for their opinions and concerns. Danbury Hospital has messages on all statements providing information regarding how the patient can get assistance with their hospital bill. Also signs are posted throughout the hospital and counselors are available to provide further assistance. All uninsured inpatients are interviewed by financial counselors and assessed for eligibility for assistance programs. The hospital provides informational handouts to all uninsured patients at the time of registration which refers them to financial counseling if they would like assistance with their bills. Further, the hospital mails notices to all self-pay accounts referring them to financial counseling if they need assistance. The collection department will also refer patients to financial counseling when a patient indicates that they cannot afford their balances; and finally, schedulers refer uninsured patients to financial counseling prior to their test or procedure. The Hospital's primary service area is the City of Danbury and six surrounding suburban towns that make up northern Fairfield county. The region is generally employed and with higher than average incomes. Constituents are predominantly Caucasian, skew somewhat older than other areas of CT and the U.S., and are well-educated. Poverty levels are below other areas. The exception to this generalization is the City of Danbury as the urban core for the area that is a very diverse community with a large undocumented population not captured on census. More than 50 languages are spoken in the Danbury schools system. Explanation of how organization furthers its exempt purpose During fiscal year 2010, Danbury Hospital served 20,712 inpatients and cared for 157,022 outpatients. In addition, 70,260 patients came through our Emergency Department and 7,615 one-day surgery procedures were performed. Led by a team of skilled and dedicated healthcare professionals, Danbury Hospital's commitment to clinical excellence and patient satisfaction was recognized by numerous prestigious organizations in 2010. Awards and Achievements: -Danbury Hospital achieves HealthGrades 2010/2011 Outstanding Patient Experience Award. -The Praxair Cancer Center received the Outstanding Achievement Award for maintaining the highest standards of care. -Danbury Hospital was among 25 hospitals nationwide to be recognized for achieving exemplary surgical care outcomes. -Danbury Hospital received the Women's Health Excellence Award. -The Center for Advanced Orthopedic and Spine Care at Danbury Hospital is one of only five in the state to hold Blue Care designation in both programs (total joint and spine). Accreditations: -As a regional resource, Danbury Hospital continued to receive national recognition for its commitment to excellence by providing an advanced level of care as a nationally accredited Primary Stroke Center, Trauma Center and Chest Pain Center. -The Center for Weight Loss Surgery was reaccredited with the highest "1A" ranking. -The Southbury Sleep Disorder Center received accreditation with the highest possible recommendation. The creation of Western Connecticut Healthcare-a healthcare delivery system that combines the resources and expertise of Danbury Hospital, New Milford Hospital and their affiliates-represents a historic achievement. This affiliation gives us an opportunity to provide a higher level of care throughout the region in the most cost-effective manner while meeting the challenges posed by healthcare reform head-on. With state approval, Danbury Hospital is moving forward with the construction of a new $150 million tower project-the largest expansion in the organization's history. The new tower will double the size of our current Emergency Department and critical care unit to meet the region's growing demand for care. Work on the new tower will begin this spring, just as Danbury Hospital opens a new $8 million Level IIIB neonatal intensive care unit. The opening of the Danbury Hospital Research Institute heralds a new era of personalized medicine that holds great promise for the development of targeted therapies as we gain a deeper understanding of the genetic basis of disease. As a leading university teaching institution, Danbury Hospital established a new surgical residency program-the state's first nationally accredited program in decades. Providing our physicians and medical team with the technological advances they need to succeed remained a priority. The da Vinci robotic surgical system and the new Zeego imaging system, for example, offer patients a sophisticated level of care rarely available in a community hospital. Our HealthLink computerized health information exchange provides the electronic infrastructure for clinicians to readily access critical data. Ever mindful of improving the patient experience, Danbury Hospital built upon its established high levels of patient satisfaction and service excellence through its affiliation with Planetree, a recognized philosophy in patient-centered care. The partnership focuses on implementing innovative models of care that nurture the mind, body and spirit by supporting patients, family members and staff alike. Knowledge is power when it comes to improving the health and wellness of people of all ages in Connecticut and New York. That's the message behind a number of Danbury Hospital initiatives designed to build healthy communities. Danbury Hospital intensified its commitment to the well-being of area residents by investing more than $60 million in health resources throughout the region. Over 50% of the Board Members are independent and do not get paid by Danbury Hospital. Danbury Hospital has an open medical staff. Surplus funds are used to provide innovative technology to clinical care in addition to expanding our service area. Western Connecticut Healthcare, Inc. (parent) Western Connecticut Healthcare's mission is to benefit, uphold, promote and further the welfare, programs and activities of Danbury Hospital, which helps to further the hospital's exempt purpose. Danbury Hospital Danbury Hospital provides medical services to the community regardless of the individual's ability to pay. Services include routine inpatient ancillary and outpatient care in support of the hospital's mission statement, to enhance through medical care, education and research the health and well being of our communities in partnership with those we serve. Danbury Hospital Development Fund Danbury Hospital Development Fund was organized for the purpose of soliciting, receiving, holding, investing and administering contributions on behalf of the Danbury Hospital, which assists Danbury Hospital in furthering its commitment to the community. Danbury Health Care Affiliates Danbury Health Care Affiliates principal purpose is to provide medical care on an outpatient basis in Danbury and Ridgefield, while serving those that cannot afford the care. Approximately $1,000 in charity care was provided during 2010. Business Systems, Inc. Business Systems, Inc, is a taxable corporation whose main business is the operation of Danbury Pharmacy, a retail pharmacy. The Pharmacy's revenue is comprised of prescription sales, over the counter sales, and wholesale sales (medical and surgical supplies) sold to office practices and clinicians that are not covered by insurance programs. Danbury Visiting Nurses Association Danbury Visiting Nurses Association, Inc. (VNA) provides state of the art clinical services ranging from pediatric patients to the elderly utilizing best practice in home care to meet the needs of their patients. For 2010, VNA provided $71,513 for charity care. Regional Hospice of Western Connecticut, Inc. Regional Hospice of Western Connecticut is a community-based, not-for-profit agency providing care to patients with life-limiting illnesses or those who are coping with the loss of a loved one. CT X X false true false true false false false true true false false JOHN M MURPHY MD 417040 0 273602 0 3511 0 10200 0 28267 0 732620 0 0 0 FRANK J KELLY 591654 0 902305 0 21590 0 10200 0 34034 0 1559783 0 0 0 JUDITH WARD 255070 0 0 0 1175 0 10200 0 29249 295694 0 0 0 Michael Daglio 229286 0 60000 0 578 0 10200 0 28597 0 328661 0 0 0 MATTHEW A MILLER MD 0 422350 0 125000 0 25058 0 10200 0 21552 0 604160 0 0 PHYLLIS F ZAPPALA 297326 0 285136 0 3897 0 10200 0 18215 0 614774 0 0 0 Lisa Messina 207015 0 40000 0 363 0 10200 0 5364 0 262942 0 0 0 DONNA KAPLANIS 181007 0 60000 0 1340 0 10200 0 33900 0 286447 0 0 0 MOREEN O DONAHUE 277615 0 85000 0 5225 0 10200 0 35170 0 413210 0 0 0 Peter Courtway 231672 0 60000 0 18625 0 10200 0 13096 0 333593 0 0 0 MORRIS GROSS 230001 0 45000 0 4143 0 10200 0 31737 0 321081 0 0 0 Joseph A Campbell 188904 0 40000 0 2180 0 10200 0 34724 0 276008 0 0 0 William Roe 348941 0 155000 0 2844 0 10200 0 27786 0 544771 0 0 0 William Maldarelli 236854 0 0 0 7470 0 10200 0 20714 0 275238 0 0 0 William Delaney MD 235639 0 21146 0 1737 0 10200 0 28673 0 297395 0 0 0 David S Wishko 125243 0 0 0 2390 0 8679 0 15309 0 151621 0 0 0 Dawn Myles 194898 0 25000 0 500 0 10200 0 7706 0 238304 0 0 0 Ramin Ahmadi 214021 0 37000 0 958 0 10200 0 28379 0 290558 0 0 0 Relevant Information Regarding Compensation Benefits Part I, Line 1a The following individuals 2009 W-2 wages reflected SERP adjustments for tax gross up amounts and was governed by its own agreement: Frank J. Kelly $288,469 Matthew A. Miller, MD $168,758 Phyllis F. Zappala $89,786 During 2009, housing was paid on behalf of William Roe, in the amount of $51,291 and was reflected as taxable compensation. Reason For Not Following Policy Regarding Payments Part I, Line 1b There is currently not a written policy for housing reimbursement. The housing reimbursement to William Roe was reflected in his employement agreement, which was approved by leadership and governance. Recieved Severance, Supplemental NQ Retirement, Equity-Based Compensation Part I, Line 4 The following individuals 2009 W-2 wages reflected SERP adjustments for tax gross up amounts and was governed by its own agreement: Frank J. Kelly $288,469 Matthew A. Miller, MD $168,758 Phyllis F. Zappala $ 89,786 During the fiscal year ending September 30, 2010, Dr. John Murphy, President and CEO, was the only participant of a new SERP plan. No payments were made to him. Due to a cap in the defined pension plan of $190,000 the SERP is intended to give supplemental retirement benefits to key members of the executive group, whose salary exceeds this amount. The SERP is designed to vest key executives with an incentive to remain with The System until they reach retirement age. The SERP is not a qualified retirement plan and therefore is subject to certain tax implications upon vesting vs. the time retirement payments are made. The expenses for the SERP costs are recognized each accounting period in three segments. These are: Prior Service Costs The actual present value of SERP benefits for members of the SERP group as computed on the date the SERP is implemented. The intangible asset is amortized over the estimated working life of the executives in the SERP plan. Current Service Costs The current service cost (CSO) is the amount of benefits earned by the employee during the current period. The CSO is calculated as the difference in the actuarial present value of a life annuity, starting on the projected date of retirement, discounted to the beginning of the present accounting period; and the same annuity discounted to the end of the present accounting period. Interest Component Each year the beginning balance in the Unfunded Benefit Obligation is charged a discounted interest rate. The interest cost (implied) is the increase in the benefit obligation due to the passage of time. Compensation Contingent On Net Earnings Or Related Organization Part I, Line 6 Summary of Executive Incentive Plan (Excerpts From) The Plan will be administered subject to the Board policy on Executive Compensation by the Committee on Governance serving as the Executive Compensation Committee (the Committee) of the Board of Directors of Western Connecticut Healthcare, Inc.. The Committee may in its sole discretion interpret the Plan, prescribe any rules and regulations necessary or appropriate for administration of the Plan, and make such other determinations and take such action as it deems necessary or advisable. The Plan year will begin October 1, 2009, and end September 30, 2010. The measurement period for award purposes will be the same. Eligibility to participate in the Plan will be limited to those who are in positions in which their decisions, actions and counsel significantly affect the operations of Western Connecticut Healthcare, Inc. and its subsidiaries, as determined by the Committee and with input provided by Senior management. Prior to the start of each Plan year, or as soon as practicable thereafter, the Committee, with input provided by senior management, will determine which eligible individuals will participate in the Plan with respect to such Plan year and they will be listed accordingly. In determining which eligible individuals will participate, the Committee will take into account the extent to which eligible individuals are in positions in which their decisions, actions and counsel significantly affect the overall performance of Western Connecticut Healthcare, Inc. and its affiliates. To be considered for participation, an individual must be in an incentive eligible position for no less than 6 months of the respective Plan year. Incentive awards will be prorated as appropriate to reflect partial Plan year participation. Eligible individuals must be employed by Western Connecticut Healthcare, Inc. at the time of executive incentive award distribution. The Committee will establish the target award opportunity (expressed as a percentage of base salary) for each participant in the Plan. The target award is the amount paid to participants for actual performance that meets expectations. To recognize a range of performance above and below the "target" level, participants may earn one-half to one and one-half times the target award opportunities based on actual performance. A threshold of performance must be achieved in order for participants to earn awards. Prior to the beginning of each Plan year, or as soon thereafter as practicable, weightings for the performance measures included in the plan will be determined for each participant in accordance with the nature of each participant's stated goals and responsibilities (i.e., organizational, functional/individual, etc.). Prior to the beginning of each Plan year, or as soon thereafter as practicable, performance measures and performance levels will be established for each participant in the Plan. Incentive awards will be modified or eliminated if at the level of performance specified in the circuit breaker is not achieved. If EBITDA is less than basic, full elimination of incentive award will occur. Notwithstanding any other provision of the Plan, incentive awards can be affected by an individual modifier (based on individual executive performance). Additional Information Part III The organization relied on a related organization, Western Connecticut Healthcare, Inc. which used the following methods described below to establish top management's compensation: -Compensation committee. -Independent compensation. -Written employment contract. -Compensation survey or study. -Approval by board or compensation committee. CHEFA Rev Bonds Series H 060806186 20774UCL7 2006-03-16 40924665 Series H See Schedule O false false CHEFA Rev Bonds Series I 060806186 20774UCM5 2006-03-16 40000000 Series I See Schedule O true false CHEFA Rev Bonds Series J 060806186 20774UA96 2008-06-27 35580000 Series J See Schedule O false false 42742900 1431798 39070172 2007 false false true true 41070925 20477952 1091807 20975520 2008 true false true true 35580000 36400000 554401 2008 false true true true false false false false true true false false false false true true false false false false true true false false false false false false false true false false false false false false false false false false William Roe Embezzled funds/inflated appraisal of home false Precyse Solutions See Schedule O 281808 conduct coding reviews false Marcus Dairy See Schedule O 120431 provides dairy products false Business or Family Relationship of Officers, Directors, Etc. Form 990, Part VI, Line 2 John Murphy, MD, an officer of Danbury Hospital and John C. Kline, a director of Danbury Hospital have a business relationship. Richard Jabara and James Kennedy, both directors of Danbury Hospital have a business relationship. Description of Classes of Members or Stockholders Form 990, Part VI, Line #6 Western Connecticut Healthcare, Inc. is the sole member of Danbury Hospital. Description of Classes of Persons, Nature of Rights, & Voting Rights Form 990, Part VI, Line 7A The sole member shall be responsible for electing, at the annual meeting of the membership, the members of the Board of Directors of the Hospital to serve for three year terms and until their successors are elected and have qualified. Form 990, Part VI, Line 7B The duties and responsibilities of the sole member shall include, among others, the following: Electing at the annual meeting of the membership, the members of the Board of Directors of the hospital to serve for three year terms and until their successors are elected and have qualified: Filling vacancies on the Board of Directors, which occur between elections; reviewing, making, and approving changes in the bylaws; insuring that the objective, purposes and goals of Danbury Hospital as stated in the charter of the Danbury Hospital, Inc. are properly and effectively carried out by the Board of Directors; delegating as appropriate, to the Board of Directors, policy-making functions, the supervision of the Hospital's operations and the control over the Hospital's assets. Review Process Form 990, Part VI, Line 11 Steven Rosenberg, CFO, will review the 990 prior to it being sent to the IRS. A preliminary 990, is presented to the Audit Committee in June, who reviews it on behalf of the Board. E&Y is on hand to review the 990 with the Audit Committee and answer any questions. Prior to the 990 being filed with the IRS, the Board will get a full and accurate copy. Explanation of Monitoring and Enforcement of Conflicts Form 990, Part VI, Line 12c Board members and senior management are cognizant of the importance of disclosure of potential conflicts of interest and will question possible conflicts in various Board meetings. The Chief Compliance Officer is part of the routine contracts review process and watches for potential conflicts with Board, Management and staff. The Compliance Officer will continually request the information until all responses are received. The Audit Committee reviews and evaluates each disclosure to determine if there is a conflict. A summary report is shared with the full Board. The COI policy below notes what is to occur, when there is a clear conflict. CONFLICT OF INTEREST POLICY FOR DIRECTORS AND OFFICERS The purpose of this Policy is to ensure that the directors and officers of Western Connecticut Healthcare, Inc. (WCH) (together the "Representatives" and individually a "Representative") are not prevented from performing services on behalf of WCH solely because of possible conflicts of interest on their part, and that the Representatives will be able to govern and serve the best interests of WCH by exercising their best care, skill and honest judgment on its behalf. This Policy recognizes that (1) members of the Board of Directors are often chosen because of their experience in matters relevant to the operation of WCH and (2) that directors and officers may be asked by WCH to participate on behalf of WCH as a director or officer of another organization, trade association, joint venture and network. Accordingly, another objective of this Policy is to ensure that members of the Board of Directors and officers are not disqualified from participation in WCH governance by virtue of their affiliations with other institutions or entities. Notwithstanding the above, it is possible that a Representative may have an actual or potential conflict of interest (1) based on personal interests or transactions or (2) by virtue of his or her relationship as an owner, creditor, agent, officer, director or employee of another entity. The objectives identified above will be promoted by: (1) full disclosure by directors and officers of all personal and outside interests that may affect or be affected by WCH's operations or by decisions that the Representative makes on WCH's behalf and (2) establishment of guidelines for determining when actual and potential conflicts of interest occur and of principles and procedures for addressing actual and potential conflicts. Each actual or potential conflict of interest that is disclosed should be carefully examined and appropriate measures put into place to maintain the balance between ensuring fair and honest deliberations and encouraging participation of qualified Representatives in WCH. The Board of Directors of WCH recognizes the importance to WCH of having a consistent policy applicable to the directors and officers of all corporations within its system. This Policy therefore applies to the directors and officers of WCH as well as the directors and officers of Danbury Hospital, Danbury Hospital Development Fund, The Danbury Visiting Nurse Association, Regional Hospice of Western Connecticut, Danbury Health Care Affiliates, and Business Systems, Inc. and the Board of each such corporation shall take whatever action as may be necessary to insure the effectiveness of this Policy. Voting. No director having a conflict of interest on any matter shall vote on that matter or be counted in determining the quorum for the meeting at which the vote is taken, even when permitted by law. No Representative having a conflict of interest on any matter shall use his or her personal influence on the matter. Need for Resignation or Decision Not to Appoint. If the Board of Directors, in its sole discretion, determines that any Representative has conflicts of interest sufficient in number and/or importance that the effectiveness of such Representative on behalf of WCH may be significantly impaired, the Board may ask the representative to resign. Compensation Review & Approval Process for CEO, Exec. Dir., or Top Mgtment Form 990, Part VI, Line 15a & 15b In order to achieve its mission and its overall performance objectives, Western Connecticut Healthcare, Inc. employs a performance-based total compensation program for its senior executives that is market competitive, compliant with regulatory guidelines, and representative of best practices. Eligible executives are generally direct reports of the CEO along with other executives designated by the CEO. Incentive compensation is a critical element of total compensation. Incentive compensation is intended to encourage and reward executives for achieving or surpassing specific short-term organizational performance objectives. The incentive plan supports the accountability and results-oriented at Western Connecticut Healthcare, Inc. Resulting cash compensation levels will be competitive and within the limits considered reasonable with respect to the Taxpayer Bill of Rights. Executives participate in the standard benefit package applicable to all Western Connecticut Healthcare, Inc. employees. This benefit package is targeted at the 50th percentile level for all employers. To meet Western Connecticut Healthcare, Inc.'s total compensation objectives for executives, the following survey sources are used for comparison purposes: -Metropolitan New York area not-for-profit healthcare organizations. -If relevant and reliable Metro New York surveys are not available, national not-for-profit healthcare data are used and a 10% premium is applied to reflect the metropolitan New York area. -For cross-industry executive positions, (Eg.CFO, CIO, VP Engineering, and VPHR) not-for-profit healthcare and for-profit general industry surveys are blended. (50-50%) -For Physician executives, surveys covering physician compensation in accredited medical schools are used in combination with proprietary surveys compiled by nationally known consulting firms and the MGMA. (Also applicable to all other physicians) The compensation consultant benchmarks Western Connecticut Healthcare, Inc.'s executive positions based on job duties, scope and reporting relationships. Premiums may be applied to market data for certain positions to reflect responsibilities that are in addition to those included in the survey position market matches. Western Connecticut Healthcare, Inc. targets cash compensation at the 75th percentile, and expects executives to perform at the 75th percentile. Base salary plus short-term (annual) incentive awards (total cash) approximate the 75th percentile of the competitive market for total cash compensation. Executive performance is expected to meet the 75th percentile on predetermined operational and financial metrics. Other factors, such as competitive market forces, job performance, unique qualifications, and/or individual job responsibilities are also considered in Western Connecticut Healthcare, Inc's executive compensation decisions. Roles of the Committee on Governance and Key Executives in the Executive Compensation Process - The Committee on Governance in consultation with the CEO and the VPHR selects the outside compensation consultants. The current consultant is the Hay Group, whose purpose is to provide a valid independent assessment of the relevant market rates and pay practices. - The compensation consulting firm compiles appropriate market date, job evaluation and ranking information. Once the report is final it will be supplied to the Committee on Governance for their consideration and acceptance. Based on this review, the CEO submits salary recommendations to the Committee for review and final approval. -The Committee on Governance determines the CEO's salary based on overall performance and market data supplied by the outside market consultant. The last executive compensation evaluation by an outside consultant was done in 2009. Other Organization Documents Publicly Available Form 990, Part VI, Line 19 The information that has been posted on the Western Connecticut Healthcare, Inc. website for 2010 includes: 1) The 2010 audited financial statement for Danbury Hospital and Subsidiary. 2) The 2010 audited financial statement for Western Connecticut Healthcare, Inc. and Subsidiaries. 3) The 2010 audited financial statement for VNA. 4) The 2010 audited financial statement for Regional Hospice of Western Ct. 5) The 2010 audited financial statement for New Milford Hospital. 6) The 2009, 2008, 2007, and 2006 Return of Organization Exempt from Income Tax Also included is the Code of Business Ethics, Information about our Compliance Program, and a copy of our policy regarding Preventing of Fraud, Waste and Abuse. All governing documents required by law are made available upon request. Additional compensation information Form 990, Part VII FOR ALL OFFICERS AND THE TOP 5 EMPLOYEES, ALTHOUGH ONLY 40 HOURS IS NOTED TO REFLECT PAID HOURS, ACTUALLY WORKED HOURS EXCEEDED THIS AMOUNT. Note: All amounts in column F, of Part VII,"Estimated Amount of Other Compensation", represent benefits, and do not reflect any compensation for which the average amount of time worked can be reflected. During the fiscal year John Murphy, MD, served in the capacity of Executive Vice President until July 1, 2010, when he became the President and CEO upon the retirement of Frank Kelly. Hours per week devoted to related organizations, for which compensation was reported in columns (E) or (F): Matthew A. Miller, MD 0 Average hours A related organization pays compensation to Dr. Miller for the services he provides to Danbury Hospital. As Chief Medical Officer of Danbury Hospital Dr. Miller's actual hours worked exceeds the 40 hours reflected on the 990 and the amount noted above. DESCRIPTION OF CONTRIBUTIONS FORM 990, PART IX, COLUMN D ALTHOUGH CONTRIBUTIONS ARE REFLECTED ON LINE #1 OF PAGE #1 ON FORM 990, ALL FUNDRAISING EXPENSES WERE INCURRED BY THE DANBURY HOSPITAL DEVELOPMENT FUND, INC. Description of Bonds Schedule K, Part I, Column F Series H Proceeds from the Sales of Series H Bonds will be used, together with other monies available to 1) finance a portion of the costs of the Series H project, 2) to fund capitalized interest, if any on the Series H Bonds, and 3) to pay certain costs of issuance and bond insurance premiums incurred in connection with the issuance of Series H Bonds. Series I Proceeds from the Sale of the Series I bonds will be used, together with other monies available to 1) refund all or a portion of the Authority's outstanding Revenue Bonds, Danbury Hospital Issue, Series E, 2) refund all or a portion of the Authority's outstanding Revenue Bonds, Danbury Hospital, Issue, Series F, 3) to finance and refinance a portion of the Series I Project and 4) to pay certain costs of issuance and bond insurance premium incurred in connection with the issuance of Series I Bonds. Series H and I - more detailed The proceeds of the Series H Bonds and Series I Bonds will be used, together with other monies available 1) to refund all or a portion of the Authority's outstanding Revenue Bonds, Danbury Hospital Issue, Series e, 2) to refund all or a portion of the Authority's outstanding Revenue Bonds, Danbury Hospital Issue, Series F, for the construction, renovation and equipping of a 61,000 square foot outpatient diagnostic building, an adjacent 381 space parking garage and a 264 space surface parking lot and approximately 28000 square feet of medical office space incorporated within the parking garage and for the renovation and repair of certain miscellaneous capital projects and the acquisition of miscellaneous equipment necessary in the operation of the Hospital's business, 3) to fund capitalized interest if any on the Series H Bonds and Series I Bonds and 4) to pay certain costs of issuance and credit enhancement fees with respect to the Series H Bonds and the Series I Bonds. Series J The proceeds from the sales of Series J bonds will be used together with other monies available to 1) refund all or a portion of the Authority's outstanding Revenue Bonds, Danbury Hospital Issue, Series I and 2) to pay certain costs of issuance incurred in connection with the issuance of Services J bonds. Description of Transactions Schedule L, Part IV, Column B During the year the following transactions are at arm's length, entered into the ordinary course of business and in compliance with the Organization's Conflict of Interest Policy: Michael Hammond, a director at Danbury Hospital is a board member of Precyse Solutions, which Medical Records contracts with to conduct coding reviews. Neil Marcus, Esq., director of Danbury Hospital and attorney, is an officer, director and shareholder of Marcus Dairy, Inc., a vendor of Danbury Hospital. Danbury Health Care Affiliates Inc 95 locust avenue danbury CT 06810 222594968 OP hlthcr svc CT 501(c)3 9 NA danbury hospital development fund 24 hospital avenue danbury CT 06810 237425557 admin contrib CT 501(C)3 7 NA danbury visiting nurse association inc 4 liberty street danbury CT 06810 060655138 home hlthcare CT 501(C)3 9 NA regional hospice of western connecticut 405 main street danbury CT 068104710 061178847 patient care CT 501(C)3 7 NA danbury office of physician services 95 locust avenue danbury CT 06810 061137531 physician svc CT 501(C)3 9 NA Western Connecticut Healthcare Inc 95 Locust Avenue Danbury CT 06810 222594977 program devel CT 501(c)3 11,Type II NA The New Milford Hospital Inc 21 Elm Street New Milford CT 06776 060669121 Acute Care CT 501(c)3 3 NA Business Systems Inc 95 locust avenue danbury CT 06810 061119262 pharmacy CT NA c CORP 0 0 danbury health systems insurance co 10 main street po box 1051 GT grand cayman CJ 980438151 malpractice CJ NA c corp 11216278 58805745 1.00000 true false true false false false false true true true true true false true true true true true Danbury Health Care Affiliates Inc a 121179 Danbury Health Care Affiliates Inc h 63300 Danbury Health Care Affiliates Inc k 189385 Danbury Health Care Affiliates Inc l 555661 Danbury Health Care Affiliates Inc n 128718 Danbury Health Care Affiliates Inc p 5047702 Danbury Health Care Affiliates Inc q 5014373 Danbury Hospital Development Fund a 78132 Danbury Hospital Development Fund c 6994498 Danbury Hospital Development Fund j 101640 Danbury Hospital Development Fund k 68548 Danbury Hospital Development Fund p 5121951 Danbury Hospital Development Fund q 1387896 Danbury Visiting Nurse Association Inc p 966518 Danbury Visiting Nurse Association Inc q 908965 Regional Hospice of Western Connecticut k 83725 Regional Hospice of Western Connecticut n 183778 Regional Hospice of Western Connecticut p 292516 Regional Hospice of Western Connecticut q 55191 Danbury Office of Physician Services a 1773742 Danbury Office of Physician Services i 129996 Danbury Office of Physician Services k 647501 Danbury Office of Physician Services l 34585236 Danbury Office of Physician Services n 895145 Danbury Office of Physician Services p 5590539 Danbury Office of Physician Services q 38803717 Business Systems Inc a 264261 Business Systems Inc p 12350000 Business Systems Inc q 12010120 Danbury Health Systems Insurance Co o 11881113 Danbury Health Systems Insurance Co p 8742450 Danbury Health Systems Insurance Co q 8775265 Danbury Health Systems Insurance Co r 5000000